Steps to Take When Accepting Credit Cards

Visa and MasterCard cards are designed with special security features to deter counterfeiting and fraud. A fraudulent transaction could involve an invalid account number or a valid number with unauthorized use.

One of the main causes of fraud losses is unauthorized use of a lost or stolen card. Fraudulent activity normally occurs within hours of the loss or theft - before most victim have called to report the loss.

This is why it is so important to compare the signature on the card and the sales draft. If they don't match, you may be able to stop a fraudulent transaction even if the authorization center has not yet been told to pick up the card. Keep in mind that the thief may have altered the signature panel or re-embossed the card to change the account number.

Watch for suspicious behavior

While any of the following can occur in a perfectly legitimate transaction, these characteristics are frequently present during fraudulent transactions. Be alert for a customer who:

You will be asked a series of "yes" or "no" questions. Hold the card while the operator gives you instructions.

Always check the security features

Embossing

Magnetic stripe

Signature panel

Hologram

Check the card's embossing

The first four digits of the Visa Account number (the bank identification number [BIN]) must be pre-printed above the embossed number. If these number do not match exactly, the card has been altered or is counterfeit.

Visa's embossed account numbers begin with a 4 and contain either 13 or 16 digits.

If the unique security character "MC" appears next to the expiration date of a MasterCard card, make sure the card account number is indent-printed in reverse italics on the signature panel.

Check the signature panel

A repetitive, color design of either the "Visa" or "MasterCard" name should appear on all signature panels.

An altered signature panel may be discolored, glued, painted, erased, or covered with white tape.

Compare the signature on the card with the signature on the sales draft. If they are different, request photo identification, such as a driver's license. If you are still not satisfied that the customer is the legitimate cardholder, call for a Code 10.

The signature panel on MasterCard cards may include an indent-printed account number followed by a three-digit validation code.

Check for hologram tampering

The gold or silver holograms should show clear, three-dimensional images that appear to move when the card is tilted. Imitations can often be easily damaged by scratching.